LOAN NUMBER 9341-ID Loan Agreement (Agriculture Value Chain Development Project (ICARE)) between REPUBLIC OF INDONESIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 2 of 17 LN 9341 -ID LOAN AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF INDONESIA ("Borrower'') and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank"). The Borrower and the Bank hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.01 . The General Conditions (as defined in the Appendix to this Agreement) apply to and form part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II - LOAN 2.01. The Bank agrees to lend to the Borrower the amount of one hundred million United States Dollars ($100,000,000), as such amount may be converted from time to time through a Currency Conversion ("Loan"), to assist in financing the project described in Schedule 1 to this Agreement ("Project"). 2.02. The Borrower may withdraw the proceeds of the Loan in accordance with Section III of Schedule 2 to this Agreement. 2.03. The Front-end Fee is one quarter of one percent (0.25%) of the Loan amount. 2.04. The Commitment Charge is one quarter of one percent (0.25%) per annum on the Unwithdrawn Loan Balance. 2.05 . The interest rate is the Reference Rate plus the Variable Spread or such rate as may apply following a Conversion; subject to Section 3.02(e) of the General Conditions. 2.06. The Payment Dates are January 1 and July 1 in each year. 2.07. The principal amount of the Loan shall be repaid in accordance with Schedule 3 to this Agreement. ARTICLE III - PROJECT 3.01. The Borrower declares its commitment to the objective of the Project. To this end, the Borrower shall carry out the Project through its Ministry of Agriculture in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. 3 of 17 LN 9341-ID ARTICLE IV - EFFECTIVENESS; TERMINATION 4.01. The Additional Condition of Effectiveness is that the Borrower, through Ministry of Agriculture, has adopted the Project Operations Manual, in form and substance satisfactory to the Bank. 4.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. ARTICLE V - REPRESENTATIVE; ADDRESSES 5.01. The Borrower' s Representative is its Minister of Finance. 5.02. For purposes of Section 10.01 of the General Conditions: (a) the Borrower's address is: Directorate General of Budget Financing and Risk Management Ministry of Finance Gedung Frans Seda Jl. DR. Wahidin Raya No. 1 Jakarta 10710 - Indonesia; and (b) the Borrower' s Electronic Address is: Facsimile: E-mail: +62-21-381-2859 direktoratPH@kemenkeu.go.id 5.03. For purposes of Section 10.01 of the General Conditions: (a) the Bank' s address is: International Bank for Reconstruction and Development 1818 H Street, N .W. Washington, D.C. 20433 United States of America; and (b) the Bank' s Electronic Address is: Telex: Facsimile: E-mail: lndonesiaCMU@worldbank.org 248423(MCI) or 1-202-477-6391 64145(MCI) 4 of 17 LN 9341 -lD AGREED as of the Signature Date. REPUBLIC OF INDONESIA By t A~ entative~ Name: L UK Y AL fi R.MAI\J OIRE.C: ro~ GE NERA L Of: BUDGtT Title: f(I\J ANC.I NG .4 ·o l<-1.~K MA J\IAGE ME tvi INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Authorized Representative Name: HJf&1{, ,(~ Title: AGft,JC, UJv,J[t'( ~tl.ECAat Date: b /r,--1t I 'J J.2 . 5 of 17 LN 9341-ID SCHEDULE 1 Project Description The objective of the Project is to support environmentally and financially sustainable and inclusive agricultural value chains in selected locations. The Project consists of the following parts: Part 1: Strengthening value chains in selected Kawasan Pertanian (agri-zone clusters) 1.1 Development ofKawasan Pertanian (agri-zone clusters) models and value chains. Supporting: (a) the validation of the Project locations (sub-districts and villages) and beneficiaries, and participatory assessments of existing value chains in selected agri-zone clusters; (b) the development of agri-zone cluster agribusiness development plans and public-private sector stakeholder platforms; and (c) strengthening selected agriculture services for value chain support. 1.2 Supporting the development of Korpora i Petani. (a) Supporting the development of farmer groups into Korporasi Petani and strengthening their technical, business, financial, and organizational skills; (b) supporting the development of viable KP Business Plans; and (c) providing KP Matching Grants to Korporasi Petani for co-financing the KP Business Plans. Part 2: Strengthening Institutional Capacity for Value Chain Development 2. 1 Collaborative dissemination of priority technologies through partnerships. (a) Supporting awareness raising for, evaluation and provision of Competitive Technology Grants to Eligible Beneficiaries for the adaptation, scale-up and dissemination of priority climate-smart and digital technologies for value chain development; and (b) supporting the transfer and adoption of existing and market-relevant technologies and mainstreaming the use of digital technologies to address value chain bottlenecks in agriculture. 2.2 Institutional capacity building. (a) Strengthening the capacity of value chain actors to support value chain integration; and (b) providing training to public sector personnel, including staff of selected ministries and subnational governments, and extension workers. Part 3: Project Management Supporting: (a) Project management, including coordination, implementation support, financial management, environmental and social risk management, and monitoring at the national, province and district levels; (b) monitoring and evaluation, through the establishment of a management information system with geographic information system capabilities; and (c) knowledge management activities for scaling up and mainstreaming Project activities. 6 of 17 LN 9341-ID SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. 1. The Borrower, through Ministry of Agriculture, shall be responsible for Project management, implementation, and monitoring and evaluation in accordance with the following institutional arrangements . National Steering Committee 2. The Borrower shall be responsible for the prov1s1on of overall policy guidance and coordination to the Project through the National Steering Committee. 3. To this end, the Borrower shall maintain, throughout Project implementation, the ational Steering Committee, with a composition, institutional framework, functions, and resources satisfactory to the Borrower and the Bank for such purpose. Project Management Unit and Project Implementation Units 4. The Borrower, through Ministry of Agriculture, particularly IAARD and AIA Ts, and specifically the Project Management Unit and the Project Implementation Units, shall be responsible for Project management, implementation, including administrative and financial management, disbursement, procurement, environmental and social management, and monitoring and evaluation. 5. To this end, the Borrower, through Ministry of Agriculture, shall maintain, throughout Project implementation, the Project Management Unit and the Project Implementation Units, with an institutional framework, functions , and resources, including competent personnel in adequate numbers, satisfactory to the Borrower and the Bank for such purpose. Other Implementation Arrangements 6. The Borrower, through Ministry of Agriculture, shall maintain, throughout Project implementation, a technical team within IAARD, with a composition, institutional framework, functions, and resources satisfactory to the Borrower and the Bank for providing technical support to the Project Management Unit and the Project Implementation Units. 7. The Borrower, through Ministry of Agriculture, shall ensure that each Project Implementation Unit shall, not later than six (6) months after the Effective Date, appoint and thereafter maintain, throughout Project implementation, a coordinator at the Kawasan Pertanian level for supporting the relevant Project Implementation Unit in coordinating Project activities at the Kawasan Pertanian level. 7 of 17 LN 9341-ID 8. The Borrower, through Ministry of Agriculture, shall ensure that the Project Management Unit and the Project Implementation Units shall, not later than one (1) month after the Effective Date, appoint and thereafter maintain a commitment officer and an assistant treasurer in the Project Management Unit and Project Implementation Units to assist with the payment verification process for all activities of the Project. B. Project Operations Manual 1. The Borrower, through Ministry of Agriculture, shall: (a) prepare and furnish to the Bank for its review and no-objection, the Project Operations Manual, in form and substance acceptable to the Bank, which shall include: (i) the description of: (A) implementation arrangements including delineation of roles and responsibilities of various entities, institutions and agencies involved in Project implementation and their coordination; (B) the procurement procedures and standard procurement documentation; (C) disbursement arrangements, reporting requirements, financial management procedures and audit procedures; (D) procedures for preparing and reviewing a consolidated annual work plan and budget for each Fiscal Year; (E) the Project performance indicators and monitoring and evaluation arrangements; (F) arrangement and procedures for the management of environment and social aspects; and (G) such other administrative, financial, technical and organizational arrangements and procedures as shall be required for the Project; (ii) the KP Matching Grant Manual for the provision of the KP Matching Grants, including the eligibility criteria and procedures for identifying and screening Korporasi Petani, appraising KP Business Plans, and extending, monitoring and evaluating KP Matching Grants, including templates of KP Matching Grant Agreements, grievance redress mechanisms in connection therewith, and communication strategies; and the Competitive Technology Grant Manual for the provision of the Competitive Technology Grants, including the eligibility criteria and procedures for identifying and screening Eligible Beneficiaries, appraising proposal for Competitive Technology Grants, and extending, monitoring and evaluating Competitive Technology Grants, including templates of Competitive Technology Grant Agreements, grievance redress mechanisms in connection therewith, and communication strategies; (b) afford the Bank a reasonable opportunity to review the proposed Project Operations Manual; and (c) promptly adopt the Project Operations Manual as accepted by the Bank. 2. The Borrower, through Ministry of Agriculture, shall thereafter ensure that the Project is carried out in accordance with the Project Operations Manual, and shall not amend or waive, or permit to be amended or waived, any provision of the Project Operations Manual without the Bank' s prior written no-objection. 3. In case of any inconsistencies between the Project Operations Manual and the provisions of this Agreement, the provisions of this Agreement shall prevail. 8 of 17 LN 9341 -ID C. Annual Work Plans and Budgets 1. Except for the Fiscal Year during which this Agreement shall become effective, the Borrower, through Ministry of Agriculture, shall: (a) prepare and furnish to the Bank not later than February 15 of each year, a draft Annual Work Plan and Budget for the Project for review and comment, setting forth the Project' s financing plan and schedule and summarizing the implementation progress of the Project for the said Fiscal Year and the activities under the Project (including, inter alia, Incremental Operating Costs and Training) to be undertaken in the following Fiscal Year (together with documentary evidence that the environment and social management obligations related to such upcoming Project activities shall be fully complied with in a timely fashion in accordance with the ESCP), including the proposed annual budget and sources of financing for the Project; (b) taking into account the Bank' s comments, finalize and furnish to the Bank not later than June 1 of each year, the Annual Work Plan and Budget, acceptable to the Bank; and (c) thereafter ensure the implementation of the Project during the following Fiscal Year in accordance with the relevant Annual Work Plan and Budget agreed with the Bank and in a manner acceptable to the Bank. Any amendment, suspension, abrogation or waiver to an Annual Work Plan and Budget required during the Fiscal Year covered by such plan shall be subject to the prior written no-objection of the Bank. 2. For the Fiscal Year during which this Agreement shall become effective, the date referred to in Section I. C.1(a) above shall be one (1) month after the Effective Date and the date referred to in Section I.C.l(b) above shall be two (2) months after the Effective Date. 3. In case of any inconsistencies between any of the Annual Work Plans and Budgets and the provisions of this Agreement, the provisions of this Agreement shall prevail. D. Environmental and Social Standards. 1. The Borrower, through Ministry of Agriculture, shall ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Bank. 2. Without limitation upon paragraph 1 above, the Borrower, through Ministry of Agriculture, shall ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan ("ESCP"), in a manner acceptable to the Bank. To this end, the Borrower, through Ministry of Agriculture, shall ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, as provided in the ESCP ; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies and procedures are maintained, and qualified and experienced staff in adequate numbers are retained to implement the ESCP, as provided in the ESCP; and (d) the ESCP, or any provision thereof, is not amended, repealed, suspended or waived, except as the Bank shall otherwise agree in writing, as specified in the ESCP, and ensure that the revised ESCP is disclosed promptly thereafter. 9 of 17 LN 9341-ID 3. In case of any inconsistencies between the ESCP and the provisions of this Agreement, the provisions of this Agreement shall prevail. 4. The Borrower, through Ministry of Agriculture, shall ensure that: (a) all measures necessary are taken to collect, compile, and furnish to the Bank through regular reports, with the frequency specified in the ESCP, and promptly in a separate report or reports, if so requested by the Bank, information on the status of compliance with the ESCP and the environmental and social instruments referred to therein, all such reports in form and substance acceptable to the Bank, setting out, inter alia : (i) the status of implementation of the ESCP; (ii) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) the Bank is promptly notified of any incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, in accordance with the ESCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. 5. The Borrower, through Ministry of Agriculture, shall establish, publicize, maintain and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances of Project-affected people, and take all measures necessary and appropriate to resolve, or facilitate the resolution of, such concerns and grievances, in a manner acceptable to the Bank. 6. The Borrower, through Ministry of Agriculture, shall ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors, and subcontractors and supervising entities to: (a) comply with the relevant aspects of ESCP and the environmental and social instruments referred to therein; and (b) adopt and enforce codes of conduct that should be provided to and signed by all workers, detailing measures to address environmental, social, health and safety risks, and the risks of sexual exploitation and abuse, sexual harassment and violence against children, all as applicable to such civil works commissioned or carried out pursuant to said contracts. E. KP Matching Grants and Competitive Technology Grants 1. For the purposes of implementing Part 1.2(c) and Part 2.1 (a) of the Project, the Borrower, through Ministry of Agriculture, shall make KP Matching Grants to Korporasi Petani and Competitive Technology Grants to Eligible Beneficiaries in accordance with eligibility criteria and procedures acceptable to the Bank and set forth in the KP Matching Grant Manual and the Competitive Technology Grant Manual, respectively. 2. The Borrower, through Ministry of Agriculture, shall make (A) each KP Matching Grant under a KP Matching Grant Agreement with the relevant Korporasi Petani, and (B) each Competitive Technology Grant under a Competitive Technology Grant Agreement with the relevant Eligible Beneficiary, all on terms and conditions approved by the Bank and set forth in the KP Matching Grant Manual and the Competitive Technology Grant Manual, respectively, which shall include the following : 10 of 17 LN 9341-ID (a) Each of the KP Matching Grants and Competitive Technology Grants shall be made to the relevant Korporasi Petani or Eligible Beneficiary, as applicable, on a grant basis. (b) The Borrower, through Ministry of Agriculture, shall obtain rights adequate to protect its interests and those of the Bank, including the rights to: (i) suspend or terminate the right of a Korporasi Petani or an Eligible Beneficiary to use the proceeds of the relevant KP Matching Grant or the relevant Competitive Technology Grant, as applicable, or obtain a refund of all or any part of the amount of a KP Matching Grant or a Competitive Technology Grant which has been withdrawn as a result of the relevant Korporasi Petani ' s or the relevant Eligible Beneficiary ' s failure to perform any of its obligations under the KP Matching Grant Agreement or the Competitive Technology Grant Agreement, as the case may be; and (ii) require each Korporasi Petani and each Eligible Beneficiary to: a. carry out the supported activities with due diligence and efficiency and in accordance with sound technical , economic, financial, managerial, environmental and social standards and practices satisfactory to the Bank, including in accordance with the provisions of the relevant KP Matching Grant or the relevant Competitive Technology Grant Manual (as the case may be), the Procurement Regulations, and those provisions of the Anti- Corruption Guidelines applicable to recipients of loan proceeds other than the Borrower, the ESCP and the environmental and social instruments referred to therein. b. provide, promptly as needed, the resources required for the supported activities; c. procure the goods, works and services to be financed out of the relevant KP Matching Grant or the relevant Competitive Technology Grant (as the case may be) in accordance with the provisions of the General Conditions, and utilize such goods, works and services exclusively in carrying out the supported activities and for the objectives thereof; d. maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Bank, the progress of the supported activities and the achievement of their objectives; e. (1) maintain records and accounts adequate to reflect the operations, resources and expenditures related to the supported activities; and (2) at the Borrower's or the Bank's request, have such records and accounts audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank, and promptly furnish the records and accounts as so audited to the Borrower and the Bank; 11 of 17 LN 9341-ID f. allow the Borrower and the Bank to inspect the supported activities, its operation and any relevant records and documents; g. prepare and furnish to the Borrower and the Bank all such information as the Borrower or the Bank shall reasonably request relating to any of the foregoing. (c) The Borrower, through Ministry of Agriculture, shall exercise its rights and carry out its obligations under the KP Matching Grant Agreements and the Competitive Technology Grant Agreements in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan. Except as the Bank shall otherwise agree, the Borrower, through Ministry of Agriculture, shall not assign, amend, abrogate or waive, in full or in part, any KP Matching Grant Agreement or any Competitive Technology Grant Agreement. Section II. Project Monitoring Reporting and Evaluation 1. The Borrower, through Ministry of Agriculture, shall furnish to the Bank each Project Report not later than forty-five (45) days after the end of each calendar semester, covering the calendar semester. 2. No later than August 3 1, 2025 , or such other date agreed with the Bank, the Borrower, through Ministry of Agriculture, shall, in conjunction with the Bank, carry out a mid-term review of the Project (the "Mid-term Review"), covering the progress achieved in the implementation of the Project. To this end, the Borrower shall prepare - under terms of reference satisfactory to the Bank - and furnish to the Bank not less than three (3) months prior to the beginning of the Mid-term Review, a report integrating the results of the Project's monitoring and evaluation activities, on the progress achieved in the carrying out of the Project during the period preceding the date of such report, and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective of the Project during the period following such date. Following the Mid-term Review, the Borrower, through Ministry of Agriculture, shall act promptly and diligently in order to take, or cause to be taken, measures recommended to ensure the efficient completion of the Project and the achievement of the objective as well as any corrective action deemed necessary by the Bank to remedy any shortcoming noted in the carrying out of the Project in furtherance of the objective of the Proj ect. Section III. Withdrawal of Loan Proceeds A. General. Without limitation upon the prov1s10ns of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Borrower may withdraw the proceeds of the Loan to finance Eligible Expenditures; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: 12 of 17 LN 9341-ID Category Amount of the Loan Percentage of Expenditures Allocated to be financed (expressed in USD) (inclusive of Taxes) (1) Goods, works, non-consulting 100,000,000 100% services, consulting services, Incremental Operating Costs, Training, KP Matching Grants and Competitive Technology Grants for Parts 1 and 2 of the Project TOT AL AMOUNT 100,000,000 B. Withdrawal Conditions; Withdrawal Period. 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made for payments made prior to the Signature Date. 2. The Closing Date is June 30, 2027. 13 of 17 LN 9341-ID SCHEDULE3 Commitment-Linked Amortization Repayment Schedule The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date ("Installment Share"). Level Principal Repayments Principal Payment Date Installment Share On each January 1 and July 1 Beginning January 1, 2029 7.14% through January 1, 2035 On July 1, 2035 7.18% 14 of 17 LN 9341-ID APPENDIX Definitions 1. "Annual Work Plan and Budget" means each of the consolidated annual work plans and budgets for the Project to be prepared or updated as provided for in Section I.C of Schedule 2 to this Agreement; and "Annual Work Plans and Budgets" means, collectively, all such plans. 2. "Anti-Corruption Guidelines" means, for purposes of paragraph 6 of the Appendix to the General Conditions, the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 and as of July 1, 2016. 3. "Assessment Institutes for Agricultural Technology" or "AIA Ts" means the technical operational units of IAARD at the provincial level responsible for the management of agricultural research and development, and whose responsibilities under the Project are set out in Section I.A of Schedule 2 to this Agreement, or a successor thereto. 4. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 5. "Competitive Technology Grant" means a grant to be provided out of the proceeds of the Loan to a Eligible Beneficiary for financing the reasonable costs of goods, works, services and training for the adaptation, scaling-up, and dissemination of locally relevant technologies supporting climate change adaptation and mitigation in agriculture and gender-responsive technologies, including digital technologies, and in accordance with a Competitive Technology Grant Agreement, as provided for in Section I.E of Schedule 2 to this Agreement; and "Competitive Technology Grants" means, collectively all such grants. 6. "Competitive Technology Grant Agreement" means an agreement to be entered into between the Ministry of Agriculture and an Eligible Beneficiary providing for a Competitive Technology Grant, as provided for in Section LE of Schedule 2 to this Agreement; and "Competitive Technology Grant Agreements" means, collectively, all such agreements. 7. "Competitive Technology Grant Manual" means the Borrower's manual for extending Competitive Technology Grants, in form and substance acceptable to the Bank, adopted by the Borrower as part of the Project Operations Manual, in accordance with the provisions of Section I.B.1 of Schedule 2 to this Agreement, as the same may be amended from time to time in agreement with the Bank, and such term includes any annexes or schedules to the Competitive Technology Grant Manual. 8. "Eligible Beneficiaries" means academic institutions, research institutes, and private sector entities duly established and operating under the laws of the Borrower that meets the criteria set out in the Competitive Technology Grant Manual and which shall receive a Competitive Technology Grant under Part 2.1 of the Project. 15 of 17 LN 9341-ID 9. "Environmental and Social Commitment Plan" or "ESCP" means the environmental and social commitment plan for the Project, dated April 25 , 2022, as the same may be amended from time to time in accordance with the provisions thereof, which sets out the material measures and actions that the Borrower, through Ministry of Agriculture, shall carry out or cause to be carried out to address the potential environmental and social risks and impacts of the Project, including the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and any environmental and social instrurnents to be prepared thereunder. 10. "Environmental and Social Standards" or "ESSs" means, collectively: (i) "Environmental and Social Standard 1: Assessment and Management of Environmental and Social Risks and Impacts"; (ii) "Environmental and Social Standard 2: Labor and Working Conditions"; (iii) "Environmental and Social Standard 3: Resource Efficiency and Pollution Prevention and Management"; (iv) "Environmental and Social Standard 4: Community Health and Safety"; (v) "Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement"; (vi) "Environmental and Social Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources"; (vii) "Environmental and Social Standard 7: Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local Communities"; (viii) "Environmental and Social Standard 8: Cultural Heritage"; (ix) "Environmental and Social Standard 9: Financial Intermediaries"; (x) "Environmental and Social Standard 10: Stakeholder Engagement and Information Disclosure"; effective on October 1, 2018, as published by the Bank. 11. "Fiscal Year" means the fiscal year of the Borrower commencing on January 1 and ending on December 31 of the same year. 12. "General Conditions" means the "International Bank for Reconstruction and Development General Conditions for IBRD Financing, Investment Project Financing", dated December 14, 2018 (revised on August 1, 2020, December 21 , 2020, April 1, 2021 , and January 1, 2022). 13. "Indonesian Agency for Agricultural Research and Development" or "IAARD" means the unit of the Ministry of Agriculture responsible for the management of agricultural research and development, and whose responsibilities under the Project are set out in Section I.A of Schedule 2 to this Agreement, or a successor thereto acceptable to the Bank. 14. "Incremental Operating Costs" means the reasonable costs incurred by the Borrower on account of Project implementation, management and monitoring, including costs of office rental, supplies and consumables, utilities, bank charges, communications, mass media and printing services, interpretation and translation services, vehicle rental, operation, maintenance and insurance, building and equipment maintenance, local transportation, domestic travel, lodging and subsistence allowances, and salaries of contractual and temporary staff, but excluding salaries and any salary supplements of members of the Borrower's civil service. 15. "Kawasan Pertanian" means the selected agri-zone commodity clusters, each of which is a geospatial unit comprising multiple villages, to be supported by the Project. 16 of 17 LN 9341-ID 16. "Korporasi Petani" means a farmer economic institution duly established and operating under the laws of the Borrower. 17. "KP Business Plan" means a business plan developed by Korporasi Petani setting forth value chain investments, which may be financed by KP Matching Grants in accordance with the KP Matching Grant Manual; and "KP Business Plans" means, collectively, all such plans. 18. "KP Matching Grant" means a grant to be provided out of the proceeds of the Loan to a Korporasi Petani for financing the reasonable costs of goods, works, services and training for carrying out a KP Business Plan, and in accordance with a KP Matching Grant Agreement, as provided for in Section I.E of Schedule 2 to this Agreement; and "KP Matching Grants" means, collectively, all such grants. 19. "KP Matching Grant Agreement" means an agreement to be entered into between the Ministry of Agriculture and a Korporasi Petani providing for a KP Matching Grant, as provided for in Section I.E of Schedule 2 to this Agreement; and "KP Matching Grant Agreements" means, collectively, all such agreements. 20. "KP Matching Grant Manual" means the Borrower's manual for extending KP Matching Grants, in form and substance acceptable to the Bank, adopted by the Borrower as part of the Project Operations Manual, in accordance with the provisions of Section I.B.1 of Schedule 2 to this Agreement, as the same may be amended from time to time in agreement with the Bank, and such term includes any annexes or schedules to the KP Matching Grant Manual. 21 . "Mid-term Review" has the meaning given to it in Section II.2 of Schedule 2 to this Agreement. 22. "Ministry of Agriculture" means the Borrower' s ministry responsible for the management of agriculture or a successor thereto. 23 . "National Steering Committee" means the committee established pursuant to IAARD ' s decree number 1047/2021 dated October 29, 2021 , and referred to in Section I.A.2 of Schedule 2 to this Agreement, or any successor thereto acceptable to the Bank. 24. "Procurement Regulations" means, for purposes of paragraph 84 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated November 2020. 25. "Project Implementation Units" means the Project implementation units established within the AIATs pursuant to IAARD ' s decree number 1047/2021 dated October 29, 2021, and referred to in Section I.A.3 of Schedule 2 to this Agreement, or any successor thereto acceptable to the Bank. 26. "Project Management Unit" means the Project management unit established within IAARD pursuant to IAARD ' s decree number 1047/2021 dated October 29, 2021, and referred to in Section I.A.3 of Schedule 2 to this Agreement, or any successor thereto acceptable to the Bank. 17 of 17 LN 9341-ID 27. "Project Operational Manual" means the Project' s operational manual, in form and substance acceptable to the Bank, adopted by the Borrower in accordance with the provisions of Section I.B.1 of Schedule 2 to this Agreement, as the same may be amended from time to time in agreement with the Bank, and such term includes any annexes or schedules to the Project Operational Manual. 28. "Signature Date" means the later of the two dates on which the Borrower and the Bank signed this Agreement and such definition applies to all references to "the date of the Loan Agreement" in the General Conditions. 29. "Training" means the reasonable costs of expenditure incurred by the Borrower in facilitating and conducting domestic and overseas training and workshop activities for the purpose of the Project, including costs of training or workshop materials; honoraria; interpretation and translation; equipment and venue rental ; lunches; per diem; accommodation; and transportation for those attending the training or workshop; but excluding salary and salary supplements of the Borrower's civil servants.